Rising Above the Noise

Rising Above the Noise

June 12, 2023

20 years later, our founder John Burroughs words still ring true. The investment world is full of noise. There are talking heads on TV, financial experts on the radio, and endless articles and blog posts about the latest investment trends. It can be hard to know what to listen to and what to ignore.

The truth is, most of the noise is just that: noise. It's designed to get your attention and make you think you need to do something with your money. But the reality is, you don't need to do anything.

The best way to invest is to tune out the noise and focus on your own financial goals. What are you saving for? Retirement? A child's education? A down payment on a house? Once you know your goals, you can start to develop an investment plan that will help you reach them.

There are two main investment approaches: strategic and tactical. Strategic investors focus on long-term goals and build portfolios that are diversified and lower risk. Tactical investors, on the other hand, focus on short-term opportunities and may take on more risk.

The best approach for you will depend on your individual circumstances and goals. If you're not sure which approach is right for you, it's a good idea to talk to a financial advisor.

Here are some tips for rising above the investment noise:

  • Don't listen to the talking heads. They're just trying to sell you something.
  • Do your own research. Read financial publications and talk to financial experts.
  • Focus on your own goals. Don't let the noise distract you from what you're trying to achieve.
  • Invest for the long term. Don't try to time the market.
  • Diversify your portfolio. Don't put all your eggs in one basket.
  • Don't panic. The market will go up and down. Stay calm and stick to your plan.

Investing can be a confusing and intimidating process. But it doesn't have to be. By following these tips, you can rise above the investment noise and build a portfolio that will help you reach your financial goals.

Here are some additional tips for avoiding investment noise:

  • Set up a budget and stick to it. This will help you track your spending and make sure you're not overextending yourself.
  • Follow the 10-20-70 Golden rule of building wealth, or even better 20-20-60.
  • Pay off your debt. The less debt you have, the more money you'll have to invest.
  • Build up your emergency fund. This will give you peace of mind knowing that you have a financial cushion in case of unexpected expenses.  The amount of emergency fund depends on your individual situation.
  • Start saving early. The earlier you start saving, the more time your money has to grow.
  • Invest regularly. Even if you can only invest a small amount each month, it will add up over time.

By following these tips, you can set yourself up for financial success.